ECB cuts interest rate to 0%

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The ECB has cut its deposit rate deeper into negative territory
The European Central Bank has cut its main interest rate from 0.05% to 0% - the first cut since September 2014 - in an effort to boost sagging euro zone economy.

The bank has also cut its deposit rate deeper into negative territory, cutting it to -0.4% from -0.3%.

The ECB also said that it would increase its bond buying programme from €60 billion a month to €80 billion a month.

The bank also said it would launch a new series of four targeted longer-term refinancing operations (TLTRO), each with a maturity of four years

ECB President Mario Draghi will hold a press conference later this afternoon.


http://www.rte.ie/news/business/2016/0310/773861-ecb-rates-meeting/
 
Be interesting to see if the banks will pass this cut on to the variable rate mortgages given the general feeling about them not doing it in the past
 
From 0.05 to 0.00 ... even if it was passed on would it make much of a dent in the repayments?

At a macro-level, I think the ECB have established that the main interest rate pedal ain't doing a thing no matter how hard you floor it?
 
odyssey06 said:
From 0.05 to 0.00 ... even if it was passed on would it make much of a dent in the repayments?
Click to expand...

Exactly. I have an €80,750 tracker mortgage with 23 years to run at a current rate of 0.55%. I work out the difference in my monthly repayments to be €1.83 after todays drop.
 
0.05% on it's own isn't worth much but it might convince some of the banks to become more competitive with their rates if they can see the cost of money is unlikely to rise anytime soon We can but hope...
 
Agreed its not going to make any real difference to somebody's mortgage its just the principle of the matter now that our great banks are all returning to profit
 
The only time our banks will change their interest rates in line with ECB changes is when the ECB start to increase them. They are not interested when the ECB is reducing the rates. I can only see a minimum difference between tracker and variable rates of 4% with the likelihood of the difference increasing when the ECB rates go up.
 
This move today confirms that interest rates will remain low for the medium term.As banks are offering fixed rate mortgages at a lower rate than variable it should put further focus on variable rates.
 
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